Ministers confirm significant reforms to Motability scheme
Pat McFadden ‘won’t deny financial consequences’ of welfare reform decision
Ministers are implementing reforms to the Motability scheme, aiming to save £1 billion by 2030 through changes to how disabled individuals acquire vehicles.
The reforms include removing VAT relief from some new Motability leases and applying insurance premium tax to all new leases for customers opting for larger, more expensive cars.
These measures follow previous scrutiny of the scheme, which led to the removal of luxury vehicles like BMWs and Mercedes from its provisions.
Work and Pensions Secretary Pat McFadden said the changes are driven by fairness for taxpayers and disabled people, while ensuring the scheme continues to support mobility and independence.
A coalition of 70 charities, including Disability Rights UK and Amnesty International UK, urged the government to reconsider, warning of negative impacts on disabled people’s access to employment, education, and medical appointments.
